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Pulmatrix (PULM)

This biopharma’s stock was added to the Russell Microcap Index last month, and its shares are gathering momentum.

Pulmatrix (PULM)
From The Konlin Letter

More than 30 million Americans and 30 million Europeans have a rare disease. Pulmatrix (PULM) is a clinical stage biopharmaceutical company developing innovative, inhaled therapies to address serious pulmonary disease using its patented iSPERSE ™ (Inhaled Small Particles Easily Respirable and Emitted) technology.

PULM’s proprietary product pipeline is focused on advancing treatments for rare diseases, including PUR1900, an inhaled anti-fungal for patients with Cystic Fibrosis (CF), as well as PUR1500, an inhaled product for the treatment of idiopathic pulmonary fibrosis (IPF). CF and IPF are rare diseases with a substantial unmet need and are marked by steady decline in lung function and quality of life.

In addition, PULM intends to pursue opportunities in major pulmonary diseases through collaborations that include PUR0200, a branded generic of a global-approved drug for chronic obstructive pulmonary disease (COPD)—affects tens of millions of patients with an over $25 billion market. COPD is expected to be the third leading cause of death and fifth leading cause of disability by ’21. PUR0200, a once daily bronchodilator for COPD, is in clinical development in Europe and in partnership with Mylan N.V., one of the world’s leading global pharmaceutical companies.

In fact, utilizing emerging iSPERSE™ technology, which delivers drugs deep into the lungs, PULM seeks to create better products for patients as the technology enables easier and more effective delivery of drugs to the lung and can be applied to multiple types of therapeutic agents (small molecules and antibodies) and diseases.

PULM has $14.8 million in cash and cash equivalents ending Mar.’16. Of the 14, 516,010 shares outstanding, 26% are closely held and 36% are owned by institutions. Previously recommended at 3.30, the stock jumped 68% before the market had its steep correction this year. The stock is volatile (large short position) and surged 90% on 6/15/16 and pulled back into the support area of 2.10-2.15 for a second buying opportunity with our 1st target remaining at 8.50-9.50.

We would Add/Buy PULM on all weakness, especially as its R&D collaboration with Mylan, a global giant pharma, has funded third party clinical costs for development of PUR0200 in Europe. Also, PULM recently reported that its European pilot bioequivalence study of PUR0200, a proprietary iSPERSE™ engineered dry powder formulation of a marketed long-acting muscarinic antagonist (LAMA) bronchodilator for the treatment of COPD, is so efficient that PURO200 can use a dose of the active drug that’s 80% lower than that of the current standard of care to get similar benefits.

PULM expects to be in the clinic with CF patients with PUR1900 in the second half of ’16. PUR1900 also has potential prophylactic applications in other immunocompromised patients who are at risk of fungal infections associated with their diseases.

The global market for pulmonary drug delivery is growing rapidly and is expected to reach U.S. $43.9 billion within the next two years with the U.S. and Europe accounting for 75% share. Ultimate target 14.00.

Konrad Kuhn, The Konlin Letter,, 631-744- 8536, July 12, 2016